Karpal Singh vs State of Haryana

S. S. Grewal, J.

This petition under Section 482 of the Code of Criminal Procedure, 1973, relates to quashment of first information report No. 179 dated 16.8.1993, against the petitioners under Sections 420/406 of the Indian Penal Code.

According to the allegations in the impugned first information report, it was alleged on the basis of special informer that the petitioners have opened an office for Gas Booking in the name of M/s. Haryana Gas Service, opposite New Anaj Mandi, Ambala and have started booking for supply of LPG Gas. The petitioners are collecting Rs. 300/ each by issuing Gas Connections in the names of individual persons by making false promises for supplying the LPG Gas connections whereas they are collecting 20 to 22 thousand rupees each from persons for allotting dealership of their company even though petitioners have not obtained any licence or authorisation letter from the Govt. or from the Food and Supplies Department, for booking LPG or for supply of LPG connections. Thus the petitioners were minting money by deceiving people on false assurances by posing as owners of Gas Agency.

In the return filed by the State of Haryana, it was pleaded that vide notification dated 28.4.93 issued by the Central Government, Ministry of Commerce import of Liquefied Petroleum Gas is permissible by all persons without obtaining a licence. However, it was pleaded that in the present case there was no agreement with any company from abroad. Neither the petitioners nor M/s. Hemkunt have intimated the Central Government in the Ministry of Petroleum and Natural Gas, about their intention to engage in the import, transportation, bottling, marketing, distribution or sale of liquefied petroleum gas, nor, they have obtained any licence under the Indian Explosives Act, 1884 for storage of LPG, and, without fulfilling these mandatory conditions, the petitioners and M/s. Hemkunth Gases Pvt. Ltd., Bhatinda are not legally competent to store or supply LPG Gas to the public. Such agreements with the intending consumers to give gas connections or for giving dealership after collecting money from them by playing deception shall amount to cheating as well as for committing criminal breach of trust.

The learned counsel for the parties were heard. For the sake of convenience the relevant provisions of the parallel marketing system as well as maintenance of records and furnishing of information by parallel marketeer, contained in gazette notification No. G.S.R. 529(E) dated 3rd August, 1993, issued by Ministry of Petroleum and Natural Gas in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955, are reproduced as under :

(j) "Parallel marketeer" means any person, firm, company, institution, association of persons, Cooperative Society or organisation carrying on the business of importing, refining, producing, bottling, marketing, distributing and selling liquefied petroleum gas under the parallel marketing system;

(k) "Parallel marketing system" means the system other than the public distribution system, under which a parallel marketeer imports, transports, bottles, distributes or sells in bulk or in retail, packed or filled in cylinder, liquefied petroleum gas under his own arrangement;

Maintenance of records and furnishing of information by parallel marketeer :

(a) Every parallel marketeer before commencing the import, transportation, bottling, marketing, distribution or sale of liquefied petroleum gas shall intimate to the Central Govt. in the Ministry of Petroleum and Natural Gas his intention to engage in all or any one of the above activities specifying therein capability to do so, and other relevant particulars.

(b) The parallel marketeer of liquefied petroleum gas shall submit a monthly return before the 15th day of the following month giving details of liquefied petroleum gas imported portwise, to the Central Government in the Ministry of Petroleum and Natural Gas.

(c) The parallel marketeer shall furnish to the Central Government in the Ministry of Petroleum and Natural Gas, or to such authority as may be specified by that government in this regard, such other information as may be required.

Perusal of the aforesaid provisions of the notification issued by the Central Government reveals that it was obligatory for the petitioners to intimate their intention of engaging in import, transportation, bottling, marketing, distribution or sale of liquefied petroleum gas as well as to submit details concerning monthly return and such other information as may be required by the concerned Ministry of Petroleum and Natural Gas in the Central Government. Apart from that it would be obligatory for the petitioners to obtain requisite licence under the Indian Explosives Act, 1884 from the competent authority for storage of gas cylinders meant for distribution to the intending consumers.

Since M/s. Hemkunth Gases Pvt. Ltd., Bhatinda or its new company under the names and style of M/s. Asian Gas Agency are not a party to the present proceedings, it would not be appropriate for this court to decide whether M/s. Hemkunth Gases Pvt. Ltd. or M/s. Asian Gas Agency have fulfilled all the legal formalities or the prerequisite conditions contained in the aforesaid instructions or in the Indian Explosives Act for importing, bottling, marketing or distributing the LPG Gas from abroad, as a parallel marketeer. Without these prerequisites, it would not be legally possible for the petitioners as distributors to give gas connections or to ensure regular supply of LPG to the intending consumers from whom they have collected money or from persons interested in allotment of dealership for supply of such LPG cylinders to the consumers. The case is still at investigation stage and it is still possible for the petitioners to obtain licence from the competent authority under the Indian Explosives Act and to complete other legal formalities before actually giving gas connections or commencing distribution of gas cylinders to such consumers. If the petitioners are not in a position to fulfil their promises made to the consumers from whom they have already collected money within a reasonable time, the circumstances may lead to an inference that the accused had the dishonest intention to cheat such consumers. At present it is not possible to say that whether the petitioners have committed the offence of cheating or not. It would be for the investigating agency to collect evidence in this regard and if necessary the trial court would decide this question according to law and procedure.

Nor at this stage, it would be appropriate to go into the question whether offence under Section 406 IPC is made out against the petitioners or not and if necessary this question too would be decided by the trial court. It is not possible to hold at present that allegations made in the complaint do not spell out commission of offences under Sections 420/406 of the Indian Penal Code against the petitioners or that investigation or initiation of further proceedings against the petitioners on the basis of impugned FIR in this court amounts to abuse of the process of the court.

For the foregoing reasons, this petition is hereby dismissed.